According to Andy Howard, head of sustainable research at Schroders, the dashboard identifies the long-term temperature rise the world is on course for, according to a framework of indicators spanning politics, business, technological progress and energy.
“All of the 12 indicators - identified as the key drivers and controls of climate change - are evaluated by Schroders and are currently exceeding the international target to limit global warming to below 2°C which was set by the Paris Agreement in December 2015," says Howard.
On average, according to the dashboard, the indicators are pointing to a temperature rise around 4°C, double the Paris target.
“The Climate Progress Dashboard highlights the disparity in commitments across sectors and indicators. Whereas global political action points to a 3.6°C temperature rise, current oil and gas production is running at a level consistent with temperature rises twice that level, highlighting the risks that remain inherent in energy companies,” explains Howard.
“Climate change is a major challenge for the global economy, industries and financial markets. However, too little attention is paid to developing the tools to manage the risks it presents. Understanding the speed of progress and the implications for investment values is critical,” he says.
“We developed the Climate Progress Dashboard to provide a unique perspective into the pace of change. It tracks trends in key progress markers towards decarbonisation. It provides an objective and transparent view of change and should help investors base decisions on the outcomes we are likely to see, rather than those we would like to see."
